Gautam Adani
Very positive news is coming for Adani Group from both global and domestic fronts. On one hand, the group’s flagship company Adani Ports and Special Economic Zone (APSEZ) has secured a huge 10-year marine services contract for Argentina’s first Liquefied Natural Gas (LNG) export project, while on the other hand, big institutional investors in the Indian stock market have bought shares worth more than Rs 15,000 crore in Adani Group companies through block deals. Investor confidence has strengthened significantly after the US Department of Justice withdrew the charges against Chairman Gautam Adani, due to which the total market capitalization of the group has increased to around Rs 20 lakh crore.
Adani’s entry in Argentina’s first LNG project
Adani Ports’ subsidiary company ‘Adani Harbor International’ has won a global competitive tender in collaboration with Argentina-based Meridian Group. The contract has been awarded by Southern Energy SA (SESA), which is developing the country’s first floating LNG (FLNG) project in Argentina’s San Matias Gulf. This project is a joint venture between Golar LNG and Pan American Energy.
Under this 10-year agreement, Adani’s consortium will provide important marine services like tugboat operations, logistics and crew transfer. For this, four special tugboats and other ships will be deployed. This project is expected to be operational from September 2027 and in its first phase 2.45 million tonnes of LNG will be produced every year. The special thing is that from the year 2027, there is a plan to export up to 10 million tonnes of LNG from Argentina to India every year, in which this project will prove to be a strong link.
Heavy purchase of Adani Group shares
Amidst the successes at the international level, big institutional investors in the Indian stock market have also placed big bets on Adani Group. Last month, block deals worth more than Rs 15,000 crore were seen in big listed companies of the group. These included big institutions like Capital International, Capital Group, SBI Mutual Fund, Birla Mutual Fund and Qatar Holding.
During this period, the maximum activity was in Adani Ports, where deals worth about Rs 7,400 crore were made. Apart from this, block deals worth more than Rs 6,200 crore were done in Adani Enterprises, in which SBI Mutual Fund bought 1.3% stake from GQG Partners at a price of Rs 2,913.40 per share. Deals worth Rs 1,600 crore were also made in Adani Energy Solutions, where SBI Mutual Fund bought 0.5% stake at Rs 1,504.8 per share. There has been a major improvement in investor sentiment towards the group due to the closure of the US investigation, due to which many of its shares have reached their 52-week high.
Increased confidence of leading brokerage firms
Global brokerage firm Bernstein has clarified in its recent report that Adani Group has successfully overcome two major obstacles which had affected investor sentiment in recent years. These included short-seller allegations in January 2023 and a US investigation in November 2024. According to the brokerage, there was never any doubt about the group’s track record of working in the market and its ability to create infrastructure.
Along with this, Jefferies has also adopted a positive outlook towards Adani Group companies. Jefferies has given a ‘Buy’ call on Adani Energy Solutions with a target of Rs 1,665 and has described it as the only listed private transmission company in the country. Apart from this, a target price of Rs 1,435 per share has been fixed on Adani Green and Rs 255 per share on Adani Power.
Disclaimer: This article is for information only and should not be considered as investment advice in any way. TV9 Bharatvarsha advises its readers and viewers to consult their financial advisors before taking any money-related decisions.
